NEGOTIATION ROLE PLAYCases fro class discussions- 12/06/2015Recovery may be a long haul for Nestle India with its flagship product Maggi noodles having been banned by food regulator FSSAI over safety concerns, according to analysts. Not only the sales of noodles but other Maggi food items like pasta, ketchup and cooking aids would also be impacted with the company's goodwill taking a major hit.Maggi is estimated to contribute 20-25 per cent in Nestle's total sales, and its monthly sales are estimated to be around Rs 200 crore. Analysts said Nestle India recovery will "be a long haul" after the Maggi episode, which "will have far reaching consequences for not only Nestle but entire food processing ondustry "We expect sales impact on other Maggi branded items like pasta, ketchup and cooking aids also. Maggi brand accounts for 30 per cent of sales while Maggi Noodles account for nearly 23 per cent of company sales," they said. "Maggi Noodles is a cult brand which has created an $500 million category in the past 30 years and it would require considerable media spends and consumer interaction to bring the product back on rails," they said.Another analyst, said: "With the ban and subsequent withdrawal of the product from the market by Nestle, this controversy will not only have material impact but also has hurt goodwill of the company." He said the controversy around the product has impacted the brand's iconic status. "Maggi Noodles contributes 20 per cent of revenues and 25 per cent of the operating profit. Besides the obvious impact on sales, the crisis could also hurt the operating leverage of Nestle as prepared dishes and cooking aids was the only segment during year 2014 that was growing in volumes," he said. "The impact on brand equity is more devastating because Maggi is widely consumed by kids and restoring consumer trust could take time," Suggesting a way forward, he said: "We believe that Nestle will have to reformulate the product, improve production processes, change packaging, claims and communication, and seek approvals for re-launch of product." Continuing to fall for the fourth straight session today, shares of Nestle India tumbled nearly8 per cent to settle at Rs 5,539.80 on the BSE yesterday. Thestock has plunged by over 25 per cent since May 20, when the controversy started. In last four trading sessions, the stock has lost nearly 19 per cent, wiping out Rs 12,221.62 crore from its market valuation, which now stands at Rs 53,412.38 crore.1. How can Nestle India renew negotiations?2. During negotiations, is it crucial to consider marketing and stock performances into consideration?3. Who can be the Best Negotiator with dealers?4. How can operating leverage hurt in this circumstance?ROLES TO PLAY- Nestle India Head (Yuvika), Analyst (Punith), Dealer Representative (Prithvi) & Human Rights Activist ( Rupesh)